Broker Sarah represents buyer Tom in his search for a home in Spokane. Tom confides to Sarah that he is willing to pay up to $480,000 for the right property, even though he plans to offer $440,000 initially. The seller's agent later asks Sarah whether Tom has flexibility in his offer. Under RCW 18.86, what should Sarah do?
Correct Answer
B) Decline to disclose Tom's maximum price, as this information is confidential under her duty to Tom
Under RCW 18.86.040, a buyer's agent owes the client a duty of confidentiality, which includes not disclosing information that may harm the client's negotiating position without the client's consent. Tom's willingness to pay up to $480,000 is precisely the kind of confidential information Sarah must protect. Disclosing it would breach her fiduciary duty to Tom.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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